An IT system is implemented, even when it has a negative NPV, because the system allows other follow-on projects. This is an example of _________?

This scenario is an example of a growth option because implementing the IT system, despite its negative net present value (NPV), opens up additional opportunities for future projects or investments that can generate positive returns. A growth option refers to the potential that a certain investment or decision can create future opportunities, leading to more substantial benefits down the line, even if the initial investment does not seem favorable.

In this case, the decision-makers recognize that while the NPV of the initial IT system may be negative, the value lies in the strategic option it provides to pursue additional projects that can enhance the overall business value in the future. This forward-thinking approach is essential in strategic planning, where the potential for future growth justifies an initial unfavorable investment.

Other options like deferral, staging, and cost-benefit analysis do not capture the essence of the scenario as effectively. Deferral refers to delaying a decision when more information is available, staging involves breaking down projects into phases, and cost-benefit analysis focuses on comparing the costs and benefits of a project to determine its feasibility. None of these options directly address the scenario's emphasis on the strategic value and future growth potential that the initial investment provides.